The adjusted EPS miss and negative free cash flow in a record-revenue quarter raise concerns about acquisition integration costs and working capital absorption. Watch for commentary on the conference call regarding fiscal 2027 guidance, organic growth sustainability, and deleveraging plans. The return to organic growth in Contractor Solutions is a positive signal, but the Greco impairment and cash burn warrant caution.
Price Chart
Executive Summary
CSW Industrials reported fiscal Q4 2026 revenue of $309.0M (+34.0% YoY), a record, driven by acquisitions and a return to organic growth in Contractor Solutions (+2.6%). However, GAAP EPS fell 41.1% to $1.22 due to a $15.6M non-cash impairment and higher interest expense. Adjusted EPS of $3.14 missed the $3.46 consensus by 9.3%, and operating cash flow turned negative (-$1.7M) in the quarter, signaling integration and working capital pressure despite record adjusted EBITDA.
Key Financial Metrics
Key Facts
- Q4 revenue $309.0M (+34.0% YoY), a quarterly record, with $72.0M inorganic growth from acquisitions and $6.4M organic growth (+2.8%)
- GAAP diluted EPS $1.22, down 41.1% from $2.08, driven by a $15.6M non-cash impairment in Engineered Building Solutions and higher interest expense
- Adjusted EPS $3.14, up 21.1% YoY from $2.59, but missed consensus estimate of $3.46 by 9.3%
- Adjusted EBITDA $82.9M (+38.8% YoY), a quarterly record, with margin expanding 90 bps to 26.8%
- Contractor Solutions segment returned to positive organic growth (+2.6%) for the first time in fiscal 2026
- Operating cash flow was -$1.7M in Q4 vs +$27.3M a year ago; free cash flow -$6.8M vs +$22.8M, due to working capital deployment
- Net debt $842.7M, leverage ratio 2.55x, within the 1-3x target range
- Full-year revenue crossed $1.1B (+23.3% YoY); adjusted EPS $10.38 (+6.9% YoY); adjusted EBITDA $269.6M (+18.3% YoY)
- Company announced a $0.30/share quarterly dividend, the 29th consecutive regular dividend
- Completed acquisition of Duckt-Strip in Q4; $1.0B deployed to acquisitions in fiscal 2026
Financial Impact
Revenue beat consensus by ~$309.0M vs $342.8M est (actual $33.8M below consensus); adjusted EPS miss of $0.32 (-9.3%) vs $3.46 consensus
Risk Factors
- Adjusted EPS missed consensus by 9.3%, which may pressure the stock near-term
- Negative operating cash flow (-$1.7M) and free cash flow (-$6.8M) in Q4 signal working capital strain from rapid growth
- GAAP EPS decline of 41.1% driven by impairment and interest expense; leverage at 2.55x limits financial flexibility
- Organic revenue declined 2.1% for the full year; recovery in Contractor Solutions (+2.6% in Q4) is nascent
- Engineered Building Solutions segment took a $15.6M impairment and is exiting the Greco business
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001624794-26-000030 |
| Document: cswi-20260526.htm | 0001624794-26-000030 |
| Document: 0001624794-26-000030-index-headers.html | 0001624794-26-000030 |
| Document: 0001624794-26-000030-index.html | 0001624794-26-000030 |
| Document: 0001624794-26-000030.txt | 0001624794-26-000030 |
| 8-K Data (Synthetic) | 0001624794-26-000030 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 16d ago | 144 | $289.52 $287.68 | ▼ −0.64% | ▼ −1.45% | $304.52 (+5.18%) |
Aug 17, 2026 6w ago | Insider Cluster | $342.71 $327.56 | ▼ −4.42% | ▼ −3.23% | $304.52 (−11.14%) |
Aug 14, 2026 6w ago | 144 | $342.71 $327.56 | ▼ −4.42% | ▼ −3.23% | $304.52 (−11.14%) |
Aug 11, 2026 7w ago | Insider Cluster | $347.01 $328.21 | ▼ −5.42% | ▼ −4.97% | $304.52 (−12.24%) |
Jul 30, 2026 9w ago | 8-K | $313.40 $347.72 | ▲ +10.95% | ▲ +7.33% | $304.52 (−2.83%) |
Jul 30, 2026 9w ago | Press Release | $313.40 $347.72 | ▲ +10.95% | ▲ +7.33% | $304.52 (−2.83%) |
Jul 17, 2026 11w ago | Press Release | $279.27 $290.29 | ▲ +3.95% | ▲ +4.63% | $304.52 (+9.04%) |
Jul 15, 2026 11w ago | 144 | $294.10 $282.29 | ▼ −4.02% | ▼ −3.04% | $304.52 (+3.54%) |
Jun 15, 2026 15w ago | 144 | $275.26 $268.76 | ▼ −2.36% | ▼ −0.13% | $304.52 (+10.63%) |
Jun 12, 2026 16w ago | Institutional Cluster | $272.07 $279.94 | ▲ +2.89% | ▲ +2.22% | $304.52 (+11.93%) |
US Market Status
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